On the 17 July 2024, the streets of London were graced by His Majesty the King, in all the usual pomp and pageantry, for the annual State Opening of Parliament. The State Opening of Parliament is a ceremonial event and marked the start of the 2024-2025 Parliamentary session.
The State Opening took place in the House of Lords where the King read a speech prepared by the newly elected Labour Government containing an outline of the government's policies and proposed legislation for the new session.
The King announced the following proposed Bills:
- Leasehold and Commonhold Reform Bill – the aim is curb ground rent for existing leaseholders and ban forfeitures.
- Renters' Rights Bill – banning no fault evictions and extend a series of building safety rules for social tenants.
- Planning and Infrastructure Bill – will improve the rate of approving infrastructure and change rules on compulsory purchase of land.
- Great British Energy Bill – this will create a state-owned energy investment and generation company (GB Energy).
- National Wealth Fund Bill – a fund to invest over 5 years in infrastructure and green industry.
- Water (Special Measures) Bill – water company bosses will be liable for lawbreaking. This is to clamp down on illegal sewage dumping.
- Passenger Railway Services Bill – this is to permit the renationalisation of passenger rail services.
- Railways Bill – creation of a new regulatory body to over track and trains.
- Better Busses Bill – will permit local leaders to take responsibility for running bus services. This Bill is likely to be read in conjunction with the English Devolution Bill.
- High Speed Rail Bill – this will create powers to build new rail infrastructure in northern England.
- Crime and Policing Bill – to enable police to tackle anti-social behaviour and making the assault of shopworkers a specific crime.
- Terrorism (Protection of Premises) Bill – will require large venues to develop procedures to deal with the threat of terror.
- Victims, Courts and Public Protection Bill – offenders will be required to attend sentencing and parental rights to be stripped from child sex offenders.
- Border Security, Asylum and Immigration Bill – police will be able to use counter-terror powers to smash gangs smuggling migrants.
- Employment Rights Bill – to ban the use of zero hour contracts.
- Race Equality Bill – extend the right to make equal pay claims to ethnic minority workers and disabled people.
- Tobacco and Vapes Bill – this is a re-enactment of Rishi Sunak's bill.
- Mental Health Bill – to tighten rules on sectioning.
- Children's Wellbeing Bill – councils will be obligated to keep a register of children not in full time education and create breakfast clubs in all primary schools.
- Conversion Practices Bill – new restrictions to ban practices aimed at changing or supressing gender or sexual orientation.
- Digital Information and Smart Data Bill – will permit digital ID.
- Cyber Security and Resilience Bill – new rules to protect critical infrastructure from attackers.
- English Devolution Bill – this will place powers on local mayors
- Budget Responsibility Bill – this will ensure that the OBR have to produce a report ahead of budgets. This is in response to the conservative mini-budget in 2022.
- Pension Schemes Bill – will introduce new rules for private-sector pensions (see below).
How might the Pension Bill affect you?
The Pension Schemes Bill is an interesting one that is going to be following on from work done by the former Conservative Government. The key points are as follows:
- It will create an obligation on Trustees to offer retirement income solutions.
- It will create an extension to 'terminal illness' to allow members of the fund to receive lump sum payouts earlier.
- Pensions will be required to actually provide value. This will lead to a consolidation of the pension market.
Clients are advised that if this Bill is passed to seek relevant financial advice.
Tax raids on Pensions and CGT – is that actually going to happen?
From a Private Wealth and Inheritance perspective, there is not going to be much change in the legislation. However, we would advise clients to keep a firm eye on Chancellor Rachel Reeves over the coming days and months as she plans to address the state of the Government's finances at the end of July in preparation for the Budget looming in the Autumn.
Despite rumours of a tax raid on pensions and allegations from the Shadow Chancellor, Jeremy Hunt, that Capital Gains Tax will be levied on death, it remains unclear to what extent tax increases will be implemented in the upcoming budget.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.